should i invest in bitcoins

Why Savvy Investors Aren’t Impressed By Bitcoin….

“Should I invest in bitcoins?” Ever doubt seeing yes to this question? Don’t get me wrong. I love Cryptocurrencies like Bitcoin and Ethereum. When normal currencies are constantly being devalued with inflation and questionable legislation, trading in dollars for BTC can be a smart move. It’s obvious that BTC and other Cryptocurrencies have made many people incredibly wealthy. And there’s also something to be said for ease and simplicity it brings to those who conduct on-line and international business. In my opinion, these currencies are here to stay.

should i invest in bitcoinsBUT if you’re a savvy investor, there is nothing about BTC that would blow your socks off. Believe it or not, many investors have been performing at or above the historical track record of BTC using other strategies and investments. But how is that possible? It’s almost impossible to find any asset that has appreciated as quickly as BTC has. So how are investors able to boast making 10 times, 20 times, or even 100 times their money, when regular markets tend to creep up over time?

 

Leverage is key…..

Most of us have some concept of leverage. Leverage can be borrowing money to amplify the performance of your investment. Leverage can also be leveraging the efforts of other people or systems to amplify one’s efforts. Most investors never consider leverage, because they assume that leverage increases risk. They think that if they’re wrong on borrowed money, they could wind up owing way more than they could ever afford to pay back. And that certainly is true to some extent. However, leverage used correctly will actually increase reward AND reduce risk.

 

How Real Estate Investors Have Mastered Leverage….

We don’t hear very much about real estate investing these days. Not when everybody is posting 10 times a day about BTC. But real estate investors who have mastered their crafts have been able to make returns that blow BTC right out of the water. And they’ve been able to accomplish this performance while risking way less than the average investor who is buying and holding BTC.

One strategy that real estate investors use to quickly multiply their capital is a term known as “wholesaling”. Most people who start investing in real estate couldn’t even come close to buying an investment property in cash. So instead they take a “leveraged position” on the deal. Rather than coming up with $200K or more to buy the property, they simply invest maybe $500 or $1,000.00 to get a property in contract. As long as they’ve effectively identified a good deal, another real estate investor will gladly pay 5 to 20 times the amount they’ve risked in earnest money. And the entire transaction can be accomplished in as little as a week or so.

An investor can risk as little as $500.00 to make over $10,000.00. In a week they’ve either succeeded, with $9,500.00 more in their pocket. Or they’ve only lost $500.00. This is how real estate investors grow into multi-millionaires, and get to the point of owning hundreds or even thousands of income properties.

 

Stock Market Wholesalers…

One of the drawbacks of real estate wholesaling is that it just isn’t as easy as it sounds. You may only have to put $500.00 down to lock in the contract. But you also have to work your butt off marketing or networking for deals, negotiating, paying for the contract, and finding a buyer who will take on the contract. It’s a very smart strategy to use, but not everyone is cut out for it.

Luckily, the stock market solves most of those problems. So long as you’re proficient at finding “deals”, you can become a wholesaler in the stock market with WAY LESS work. The beautiful thing about the stock market is that everything you need is right in front of you. The stocks are right there. The sellers are right there. The buyers are right there. All you have to do is click a couple of buttons, and you could potentially make as much in a week as most mutual funds make in 10 years.

But how do you get a stock into contract? Well, you can write out a contract any time you like. They call them options, and they are nothing more than contracts. Just as you can lock in a price on a property, you can also lock in a price on a stock using an option. And just like in real estate wholesaling, investors will potentially pay you multiple times the amount of money you’ve invested. You just have to make sure you know how to find a good deal.

 

How to spot a deal…..

This is what we’re really talking about. If we know how to find good deals, we can use leverage to make huge returns predictably. We prefer to be stock market “wholesalers” because we like not having to work our butts off to find them. And spotting a deal isn’t that hard. You just have to know what you’re looking for. Most people don’t, which means there are plenty of opportunities just waiting for informed investors to take advantage of. Take a look at how we spot all the deals we could ever want without ever leaving our computer>>>CLICK HERE

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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